1. Field of the Invention
The present invention relates to a method and system for providing multiple linked credit lines or debit accounts based on a single application, and for issuing a common access device for access to all linked accounts.
2. Background of the Technology
An access device for an electronic transaction refers to any card, plate, code, account number, electronic serial number, personal identification number, or other telecommunications service, equipment or instrumental identifier, or other means of account access including, but not limited to smart cards, electronic tokens and Radio Frequency key-fobs, that can be used to obtain money, goods, services, or anything of value, or to initiate an electronic funds transfer. Lines of credit (referred to interchangeably herein as “credit”), and associated credit access devices (referred to interchangeably herein as “credit cards”) are available to credit applicants upon approval by the credit provider. Examples of credit cards include cards available through financial institutions on the VISA® network (registered and operated by VISA of San Francisco, Calif., USA) or MasterCard® network (registered and operated by MasterCard of Purchase, N.Y., USA) (collectively referred to herein as “general purpose credit networks”), and cards available through private businesses, for example, retail and department stores (e.g., Boscov's Department Stores). Debit accounts (interchangeably referred to herein as “debit”), and associated debit access devices (interchangeably referred to herein as “debit cards”), such as those available through financial lenders, e.g., banks, credit unions or other financial institutions (interchangeably referred to herein as “debit providers”), are available to debit applicants approved by the debit provider. Credit and debit are collectively referred to herein as “credit/debit” and credit providers and debit providers are collectively referred to as “credit/debit providers” or “access device providers.”
In order to obtain approval of an access device application, applicants must enter and satisfy a qualification process including an approval process or an industry standard underwriting process and/or verification or validation of additional data, as set forth by access device providers or as generally required by access device providers in the industry. Typically, credit/debit applicants apply for a line of credit or a debit account by submitting personal and financial information to the credit/debit providers via credit/debit applications. Credit/debit applications are usually submitted to credit/debit providers via the telephone, mail, via a computer network, such as the World Wide Web or Internet, or in person, such as at a retailers point of sale or a bank's branch location. The credit/debit providers then assess the application using predefined business-specific guidelines to determine whether the applicant qualifies for credit/debit, and if so, the extent of the line of credit or debit account. Upon an affirmative determination by the credit/debit provider, which may be reached virtually instantaneously in some cases, the credit/debit provider issues a credit/debit card to the applicant with a line of credit or debit account. Conversely, upon a negative determination, the credit/debit provider rejects the applicant and withholds the issuance of a credit/debit card. Typically, the qualifications for debit accounts are substantially different from the qualifications for lines of credit.
Once an application for an access device has been approved, the access device providers typically provide approved applicants with an access device associated with a respective account. In addition, access device providers usually provide approved applicants with incentives or rewards programs (e.g., cash back, discounted merchandise, frequent flyer miles, or proprietary credit) that accumulate through use of the access device.
Generally, an applicant completes a credit/debit application in order to attempt to qualify for one line of credit or one debit account (i.e., one access device). However, it is known in the art that a single application may be used to qualify an applicant for multiple credit lines or multiple debit accounts. Assessment of a single application based on multiple criteria, such as credit risk or solvency, for example, is generally known as a “multipurpose credit/debit application” or a “multipurpose access device application,” The multipurpose credit/debit application is used in the credit/debit industry, although this type of application is much less common than a single purpose application, and is referred to herein as the “multipurpose model.”
Under the multipurpose model, the credit/debit applicant fills out a single application that is subsequently processed through a series of credit (and, where applicable, debit) qualification options (also referred to herein as a “cascade” of qualifications or a “qualification process”). For instance, with respect to the credit application, the single application is first processed for credit qualification under a first credit qualification threshold (e.g., a Platinum Card) having an associated spending limit, wherein the applicant is assessed for a predetermined amount of credit. The process provides an ultimate resolution of whether the applicant has been approved for the amount of credit associated with the Platinum Card (i.e., whether the applicant meets the “underwriting threshold”). If the applicant fails to qualify for the Platinum Card, the single application is subsequently processed for credit qualification under a second credit underwriting threshold (e.g., a Gold Card), and accordingly, a resolution is reached with respect to that underwriting threshold. This process is repeated for a plurality of credit qualification options available, typically ending with processing of the application against the lowest credit underwriting threshold, often a standard credit card offered by a single issuer.
It is also known in the art that a single multipurpose credit/debit application may be used to process credit/debit qualifications for multiple credit/debit providers, each of which independently assesses the application to determine approval or rejection. Under this scenario, the credit/debit providers independently process the application and award credit lines or debit accounts without interacting with each other. Multiple credit/debit cards are thus issued from the same application. Furthermore, the credit/debit providers do not share profits, rewards programs, or the ability to interconnect linked accounts on the same credit card.
There remains an unmet need for a multipurpose access device application assessed by access device providers acting in cooperation with each other, which, if approved, would result in a single common multipurpose access device (referred to as a “dual purpose access device” where the number of access device providers is two), linking accounts from separate access device providers. Furthermore, there is an unmet need in the art for a multipurpose access device that links multiple accounts in one access device, while also linking the incentive/rewards programs offered by each access device provider into one access device.
Additionally, there is an unmet need in the art for a system and method of use that allow a multipurpose access device application assessing credit/debit qualifications for applicants under guidelines provided by multiple access device providers. Specifically, there is an unmet need in the art for a credit/debit approval system to process a single application for approval of multiple credit lines or debit accounts provided by multiple credit/debit providers operating in cooperation with each other.